Credit Refusal Letter Sample With Writing Tips [Template]

Credit Refusal Letter Sample – In this article, we will give you a credit refusal letter example, with writing tips and a template.

There are lots of possible reasons why our credit requests are declined by our creditors. For the creditors, in writing this letter, it is crucial to know that being polite is a great way to avoid issues with the debtors. We will tackle and explain these issues in this article.

Credit Refusal Letter Sample with Writing Tips [Template]
Credit Refusal Letter Sample with Writing Tips [Template]

What is a credit refusal letter?

A credit refusal letter is a letter that is written and sent by a company or creditor. It is to a person requesting a credit request. Also, this letter contains a message telling the borrower that his/her request has been turned down and the reason why.

Why do people use credit refusal letters?

People use credit refusal letters to let the recipient know their request has been turned down in a professional manner. It is important to show politeness when writing this letter to the person requesting credit.

Using the credit refusal letter sample in this article can help you learn how to write a formal letter in response to a credit request. It’s not just about being professional but also about avoiding misunderstandings and won’t affect any future transactions.

Tips in Writing a Credit Refusal Letter

Here are the tips for writing a positive credit refusal letter.

  • Write immediately or be punctual.
    – When writing a refusal letter, write immediately or be punctual. It is important that we have a sense of urgency and that we know and understand the needs of the recipients.
  • Show appreciation and apology.
    – Do not forget to show appreciation and an apology for declining the request. It means not only not making a misunderstanding and bad impression, but also acting in a polite and thoughtful way.
  • Choose your words carefully.
    – Provide a positive and honest reason for writing the letter. You should also avoid including any negative alibis and reasons.
  • Get to the point or be brief.
    – Deliver the message or subject line of refusal at the beginning of your statement rather than placing it down. Show professionalism by stating the concern clearly with regard to the issue.
  • Close the letter courteously.
    – Leave a gentle note and mark it as a professional courtesy.
  • Proofread your letter.
    – It is important that we proofread what we write and make sure it is thorough before sending it.

How to write a credit refusal letter? Template

Time needed: 3 minutes.

Here’s a step-by-step guide to writing a letter of credit refusal.

  1. Write the sender’s information and date

    The first step in writing this refusal letter is to write the full name and address of the sender and the date at the top left corner of the letter.

    Sender's Information with Date - credit refusal letter sample

  2. Write the receiver’s information

    The second step is to write the full name and address of your receiver. It is placed below the sender’s information and date.

    Receiver's Information - sample credit refusal letter

  3. Write the salutation

    The third step is to write the salutation. In writing the salutation, you may start with “Dear” (e.g., Dear Ms./Mr.), but if you want to be more formal, use the word “To“. It is more polite to write the full name of the person to whom the letter is addressed.

    Salutation - letter of credit refusal

  4. Write the body

    The fourth step is to write the body of the letter. The body of the letter should include your appreciation for the recipient as well as the reason for writing the letter. Then, write some solutions or advice and closing remarks.

    Body - credit refusal letter examples

  5. Close the letter with your signature

    Lastly, write the closing part of the letter. Write a closing word and then your name, position, and signature.

    Signature - credit refusal letter examples

Feel free to download this refusal letter example below.

Credit Refusal Letter Sample

Below is a credit refusal letter example.


San Francisco Main Bank

3305 Harrison Street

San Francisco, CA 94112

Aug 13, 2014


Edward R. Alcaraz

Sparkles Renovation Enterprise

2103 Payne Street

Houston, TX 77073

Re: Decision on Credit Application

Mr. Edward Alcaraz,

Thank you for applying for credit in the San Francisco Bank. We have gone through your application and we found your business idea truly impressive. We would have welcomed your business, but unfortunately we are unable to extend any credit to you at this time.

Your application has been refused because you don’t possess sufficient collaterals to put forward for your request. Moreover, your business is not performing well. San Francisco Bank would be happy to reconsider your application when the situation of the real estate market changes.

Respectfully Yours,

Credit Department

San Francisco Main Bank

Sample letter to decline a credit request

Below is a sample template letter to decline a credit request.

(Sender’s Name)


(State, Zip Cade)


(Recipients Name)

(Address Line)

(State, Zip Code)


RE: Declining You Credit Application

Dear, (Recipient’s Name)
Thank you for your recent credit application with our company, we really appreciate your efforts as well as interest in doing business with our company.

Regretfully, this is to notify you that your application was declined due to the fact that your credit accruals are too high. In relevance to our policies and evaluation criteria, we don’t approve credit applications from individuals or businesses/organizations that are below an average of 500 creditworthiness. After conducting a thorough analysis on your company in relevance to the information you presented to us, we discovered that you are owing amounts amounting close to $3.44 million and comparing this to your total assets it gives us an average of 498.6 creditworthiness.

Nonetheless, you have the right to conform to the scope as well nature of the information stated in this letter is not less than ten days from the date you receive this letter. Meanwhile, we can offer our services as well as professionalism in credit resolving to assist you in improving your creditworthiness. Our company is customer oriented and values its customers, and for that, we look forward to being of any assistance to you as well keeping up our current relationship for future endeavors.

Yours sincerely,

(Sender’s Name)

(Sender’s Title)

(Cc, if applicable)


More Useful Refusal Letters

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